This chapter explores the limitations and challenges faced by charities in terms of investment, including the perception of investments as overhead. It also discusses the potential for creating a stock market or capital market for charities and the concept of lending money to non-profit organizations for fundraising events.
Dan Pallotta, Chief Humanity Officer of Advertising for Humanity and author of Uncharitable talks with EconTalk host Russ Roberts about the ideas in his book. Pallotta argues that charities are deeply handicapped by their culture and how we view them. The use of overhead as a measure of effectiveness makes it difficult for charities to attract the best talent, advertise, and invest for the future. Pallotta advocates a new culture for non-profits that takes the best aspects of the for-profit sector to enhance the mission and effectiveness of charities.